2016 (11) TMI 1326 - CESTAT ALLAHABAD

2016 (11) TMI 1326 - CESTAT ALLAHABAD - TMI - CENVAT credit on items like on items like channel, plates, copper/aluminum PVC cable, shape and section, gasket etc - manufacturer of sugar and molasses - pollution control equipments - use of bio-gas in manufacture - Held that: - there is no dispute of the appellant having fabricated the biogas plant which is admittedly pollution control equipment. Further, the gas emerging from the biogas plant is also utilized in manufacture of excisable goods. Ac .....

n informed that the issue of Cenvat credit on welding electrodes utilized for the purpose of repair and maintenance is pending consideration before Hon’ble Apex Court, but no stay have been granted of the orders of the Tribunals and High Courts wherein credit have been allowed. As we have allowed credit on welding electrodes in several other appeals before this tribunal, for the sake of consistency we allow credit in this appeal also. This appeal is allowed with consequent benefits, if any, to t .....

eerut-II. 2. The brief facts in Appeal Number E/2741/2007 are that, a SCN dated 28th April, 2006 was issued alleging that during the month of April, 2005, appellant have availed credit of ₹ 11,62,862/- including 50% inadmissible credit of previous year 2004-05 on items like channel, plates, copper/aluminum PVC cable, shape and section, gasket etc. as detailed in Annexure A to the SCN by treating this goods as capital goods. Accordingly, Revenue proposed to disallow the credit of ₹ 11 .....

or manufacture of denatured ethyl alcohol which was excisable. Further, contending that under Rule 2(K) of CCR, 2004 pollution control equipment was specifically covered at Serial No. II of the definition of capital goods. And, further the definition of capital goods includes components spares and accessories also of capital assets including pollution control equipment. The SCN was adjudicated vide OIO dated 30/11/2006 and the proposed demand confirmed along with equal amount of penalty under Ru .....

that the appellant have not fabricated or constructed the biogas plant. The disallowance is for a different reason being, the adjudicating authority not finding that pollution control equipment being not directly related to the manufacture of excisable goods. In view of the categorical entry in the definition of capital assets of pollution control equipment as capital goods, the Cenvat credit on the inputs so utilized, credit is available and accordingly prays for allowing the appeal. 4. Appeal .....

ce stating that in the sugar factory items of iron and steel were used for making shades of machinery to avoid exposure of machines to rain, sun and weather, for their efficient working. Besides various items of capital goods including staging/ supporting structures were fabricated out of these items alongwith other articles of iron in the factory workshop itself for captive consumption. The structure and staging had to be build to place the machinery and equipment at the required height and to .....

wire were used for winding of electric motors installed at various production sites in the factory and specific components of electric motors. The shapes and sections of iron and steel were used for fabrication of structural in the factory for providing shade to the machinery and for making platforms for having access to the machinery. Vide OIO dated 30/11/2006, the SCN was adjudicated and the proposed demand confirmed with equal amount of penalty along with interest observing that these items c .....

the machinery for operating the same. Accordingly prays for allowing the credit on the items in question. 6. The learned A.R. for Revenue relies on the impugned orders. He further relies on the order of Hon ble Allahabad High Court in case of the Dwarikesh Sugar Industries Ltd. vs. Commissioner of C.Ex., Meerut 2016(334) E.L.T. 58 where welding electrodes were used for repairing and maintenance of plant and machinery during the period October, 2004 to August, 2005. It was held that welding elect .....